Cryptocurrency Basics - What Is Liquidity??

The Part Time Economist

Understanding cryptocurrency liquidity is an important skill for new cryptocurrency traders, and in this video I want to explain what liquidity means, how liquidity can affect your cryptocurrency trading strategy, and compare a few high liquidity coins like Ethereum and Bitcoin to lower liquidity coins to highlight the importance of liquidity in cryptocurrency trading. In general, a higher level of liquidity means that it will be easier to buy or sell the cryptocurrency and your trades will have less of an overall price impact on the cryptocurrency market. Lower liquidity coins can be more difficult to trade and may not be listed on reputable exchanges. #crypto #investing #cryptocurrency